Transcript What’s New with RAC

Mastering the Chaos – Attacking
The 2 Midnight Rule ++ Probe & Educate Highlights
Instructor:
Day Egusquiza, Pres
AR Systems, Inc
RAC 2014
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The 2 MN rule is alive and well! In effect
since Oct 2013. No ‘grace period’ for
compliance. MACs are continuing to audit.
HR 4302 “Protecting Access to Medicare Act of 2014” signed
into law, effective 4-1-14.
(b) Limitations- the Sec of HHS shall not conduct patient
status reviews (as described in such notice) on a postpayment review basis through recovery audit contactors/RAC
under section 1893 (h) of the Social Security Act for inpt
claims with dates of admission Oct 1, 2013 – March 31, 2015,
unless there is evidence of gaming, fraud, abuse of delays in
the provision of care by a provider of services.
Probe & ED / MAC audits thru March 2015.
RAC 2014
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OIG 2014 work plan
“New inpt admission
criteria”
“We will determine the
impact of new inpt
admission criteria on
hospital billing, Medicare
payments, and
beneficiary payments.
…determine how varied
among hospitals in FY
2014.
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“Context: Previous OIG
work found overpayments for
short inpt stays, inconsistent
billing practices among
hospitals and financial
incentives for billing
Medicare inappropriately.
…expected 2 MN = inpt, less
than 2 MN= outpt, The
criteria represent a
substantial change in the way
hospitals bill for inpt and
outpt stays.:
RAC 2014
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CMS has agreed to postpone awarding the new
round of Recovery Auditor Contractor contracts
until at least Aug 15th because of pending
litigation, according to court documents.
CGI, one of the current RACs, has sued CMS in federal court
to protest terms of CMS’s proposed RAC contracts.
CMS came to an agreement with the court to delay the
awarding of new contracts while the court moves forward with
proceedings in the case.
AHA will continue to update members as more information
regarding the new round of contracts is available.
RAC 2014
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August 4, 2014 –
Due to the continued delay in
awarding new Recovery Auditor contracts, the CMS is
initiating contract modifications to the current Recovery
Auditor contracts to allow the Recovery Auditors to restart
some reviews. Most reviews will be done on an automated
basis, but a limited number will be complex reviews of topics
selected by CMS.
Work continues on the procurement process for the four Part
A / Part B Regions and the national DMEPOS/HH&H Region.
The CMS remains hopeful that the new round of Recovery
Auditor contracts will be awarded this year.
Anticipate for complex: KX therapy, spinal infusion, DME,
prosthetics (Thanks , Dr Hirsch/Accretive)
RAC 2014
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AHA sued CMS on April 14th along with 4 hospital
associations and 4 hospitals. Some key
elements: "The hospitals take issue with the wholly
arbitrary requirement that a physician must certify
at the time of admission that a Medicare pt is
expected to need care in the hospital for a period
spanning two midnights to be considered an
inpt.' and "The lawsuit also contents that the 0.2
percent cut in payment for 2014 the agency
implemented to offset the increased costs to
Medicare program the agency says are likely to
result from the 2 MN rule is arbitrary and should be
revoked. (2 lawsuits)
RAC 2014
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OIG reports to House Committee on Ways and Means. 3 areas
of focus: a) 2 MN must be carefully evaluated, b) CMS should
enhance oversight with the RAC program and c) Fundamental
changes are needed in the Medicare appeals system.
http://oig.hhs.gov/testimony/docs/2014/nudelman_testimony_05202
014.pdf
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Change obs and inpt = 1 flat rate for short stay
hospitalization, regardless of obs or inpt historical status.
Reduced for less than 2 MN= SSP.
If change to DRG payment methodology, how will the critical
access hospitals (1334ish) be paid as they are not paid by
DRG but a per diem rate on weekly remittances?
AHA’s comment: 6-26-14, CAH/96 hr, SSP rate, obs fix & 2
MN rule (Short stay = less than 2 MN=transfer $, 2 MN =
full $) NOACTION for 2015/Final IPPS/Aug 2014
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RAC 2014
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2015 IPPS discussion: Reducing payment to a
flat fee for ‘short stays’ = how much?
Will it eliminate audits for ‘being in a bed at
all?”
“If , based on the physician’s evaluation of complex medical factors
and applicable risk, the beneficiary may be safely and appropriately
discharged, then the beneficiary should be discharged and hospital
payment is not appropriate on either an inpt or outpt basis.” CMS’s
FAQ 2 MN Inpt Admission Guidance & Pt Status Review for
Admissions on or after Oct 1, 2013.
 Final IPPS: ‘thanks for the comments, but no
change.” 8-3-14
 PEPPER is targeting 1 day surgical, 2 day
Surgical, same day medical, and same day surg.
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“In CY 2014, IPPS Final Rule, CMS adopted revised certification requirements
for all inpt admissions. Because all elements of the new certification had to
be signed by the physician prior to discharge, this requirement has created a
great deal of difficulty for hospitals and arguably required the most changes
to computerized documentation systems of all changes in 2014. The
proposal would modify the regulation on certification to ONLY require the
certification for OUTLIER cases and long stays, defined as 20 days or longer.
CMS is careful to note that the order requirements from the Final Rule are not
proposed to change and an order complying with the new order
requirements is still necessary to demonstrate the patient is considered an
input during the stay.” (Thanks, HcPro)
We still need:
An order to admit to “inpt” (beginning of the pt story)
A reason for admit/WHY the pt needs 2 MN in a ‘hospital’ (middle)
A discharge note/plan (ending/wrap up)
The full medical record must support the REASON/plan demonstrated
Signed prior to discharge..still to confirm
Just no longer a statement: “I Certify..by provider directing care/mid
levels .”
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Pre-payment MAC – all J’s impacted
PROBE & EDUCATE
Hot updates
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Effective 3-6, Medicare
contractors may automatically
deny claims that are ‘related’
to other claims that have been
denied as a results of a pre or
post payment review.
 Contractors need not issue
ADRS for the ‘related’ claims
prior to issuing the denial.
 MAC, RAC, ZPIC have the
discretion to deny – ‘related’ if
documentation associated with
one claim can be used to
validate another.
RESCINDED Transmittal 505,
effective March 17, 2014! WATCH
for update
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An inpt claim denied – the
physician claim can be
determined not to be
reasonable and necessary.
A dx test denied – the
professional component
denied.
The change could impact
coverage of payment for
numerous services and
products including, for
instance episodic care, (eg
SNF, home health and hospice)
and rented DME.
Update Sub regulatory
Guidance/FAQ 3-12-14
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“Claims that are related”
Purpose: to allow the MAC and
ZPIC/Audit groups within
Medicare to have discretion to
deny other ‘related’ claims
submitted before or after the
claim in question. If
documentation associated with
one claim can be used to
validate another claim, those
claims may be considered
‘related.’
Situations: The MAC performs
post-payment
review/recoupment of the
admitting physician’s and/or
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Surgeon’s Part B services.
For services related to inpt
admissions that are denied,
the MAC reviews the hospital
records and if the physician
services were reasonable and
necessary, the service will be
re-coded to the appropriate
outpt E&M.
For services where the H&P,
physician progress notes or
other hospital record
documentation does not
support for medical necessity
of the procedure, post
payment recoupment will
occur for the Part B service.
2014
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If Documentation associated with one claim can be used to
validate another claim, those claims may be considered
related.
Upon CMS approval, the MAC shall post the intent to conduct
‘related’ claims reviews on their website.
If ‘related’ claims are denied automatically- shall be an
‘automated’ review. If ‘related’ claims are denied after
manual intervention, MACs shall count these as denials as
routine review.
The RAC shall utilize the review approval process as outlined
in their Statement of work when performing reviews of
‘related’ claims. (Note: New RACs = new SOW. Pending)
Contractors shall process appeals of the ‘related’ claims
separately.
2014
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If Documentation associated with one claim can be used to
validate another claim, those claims may be considered
related.
Upon CMS approval, the MAC shall post the intent to conduct
‘related’ claims reviews on their website.
If ‘related’ claims are denied automatically- shall be an
‘automated’ review. If ‘related’ claims are denied after
manual intervention, MACs shall count these as denials as
routine review.
The RAC shall utilize the review approval process as outlined
in their Statement of work when performing reviews of
‘related’ claims. (Note: New RACs = new SOW. Pending)
Contractors shall process appeals of the ‘related’ claims
separately.
2014
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PRG Schultz – out as a
RAC subcontractor. Not
enough money!!
YEAHOO
CMS announces RAC
‘pause” (2-19-14)
No decision announced
yet for new RACs.
Anticipate mid-Aug.
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June 1st – the last day a
RAC may send denied
claims to the MAC to
recoup payment.
5 changes to the RAC
program announced:
No longer discuss or appeal/30
days wait to allow time to discuss
RAC confirm receipt of discussion
RAC not paid until 2nd level appeal
is upheld.
CMS will revise ADR limits that will
take into account different claim
types
CMS will require adjust ADR limits
in accordance with the hospital’s
denial rate.
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“Medicare calls for review of
two midnight denials” Modern
Healthcare, 2-26-14
CMS told contractors to rereview all Medicare inpt denial
payments since Oct 1, 2013.
One of the reasons to extend
the Probe and Ed: get the
initial MAC audits consistent
with the regs.
CMS said its contractors had
requested 29,000 MR as of Feb
7, and 6,000 of those were
complete. No news on %
denied.
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Transfer update: During
MedLearn call (2-26-14)
CMS updated: receiving
hospital CAN count time at
a sending hospital toward
their own 2 MN benchmark.
Sending hospital – if there
is knowledge that the pt is
being transferred/next day,
the pt is obs as only 1 MN
is appropriate in the
sending hospital.
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Jan 30, 2014
CMS updates: “Hospital
inpatient Admission
Order and
Certification”
Lots of clarity on
signatures, verbal, etc.
www.cms.gov/MEdicare/Medic
are-fee-for-servicepayment/acuteinpatientPPS/do
wnloads/IP-Certification-andorder-01-30-14.pdf
Jan 31, 2014
 “Extension of the probe
and educate period.”
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All elements of no RAC
auditing remains/MAC only
MACS will continue to select
claims for review with
admission dates between
March 31 and Sept 30,
2014 (Now: thru Mar 2015)
They will continue to deny if
found not in compliance.
Hold educational
sessions/MAC specific
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“CMS will not permit RAC to
conduct pt status reviews
on inpt claims with dates of
admission between Oct 1,
2013-March 31, 2015.
These reviews will be
disallowed PERMANENTLY,
that is, the RAC will never
be allowed to conduct pt
status reviews for claims
with DOS during that time
period. “
But they can audit all other
areas – just not 2 MN.
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“In addition, CMS will
not permit RAC to
review inpt admissions
of LESS than 2 MNs
after formal inpt
admission that occur
between Oct 1-March
31, 2014. (now 3-15)“
www.cms.gov/research-statisticsdata-and-systems/monitoringprograms/medicalreview/inpatienthospitalreviews.ht
ml
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RAC 2014
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Only “0” and 1 midnight stay were targeted for
audit in the 1st round of Probe and Educate.
CMS shut down round 1 in April with very short
notice. Not all hospitals had their 10 identified.
Round 2 will begin in Aug – All hospitals will have a
round 2 if there were ‘at risk ‘ findings or 10 were
not audited in round 2. (Or 25) Usually 45 days
after ‘educate’ call/must be requested.
Inpt only CPT still being picked up. Coded by staff
and determine if CPT is on the list. (working on
edits)
Excluded: CAH, AMA, 2 MNs
RAC 2014
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RAC 2013
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Per Monitor Monday/7-14, listeners were
asked with their replies.
Q: If you attended a MAC educational series either a 2 MN rule
webcast or your hospital’s probe and educate 1:1 session,
what was your impression of the MAC’s understanding of the
rule?
A: 4% They did a great job explaining the rule and helping us
comply.
13% They butchered the rule and we walked out more
confused and frustrated than when we walked in
38% Their information was basic and provided us no new
insight.
45% I have not attended a session yet.
Remember- site must request ‘ed’ call with MAC
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Discussed learning
curve for the MACs to
audit
Problem with
identifying inpt only
procedures.
Re-Reviewed 3 claims
and overturned during
the call.
Have 45 days to expect
Round 2 (25 records
requested)
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Next steps learned for
the site:
◦ Internal reviewers get
checklist
◦ Use of “rare and unusual’
circumstances with
certification statement as
to why , what happened,
etc.
◦ Orders should reflect the
severity and intensity –
what is the MD going to
do about X, Y, Z.
RAC 2014
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REASON FOR ADMIT /PLAN FOR CARE – why
does the pt need an estimated 2 MN stay?
If outlined as the plan, the treatment should
address the same.
IF THE PT IS
DISCHARGED/TRANSFERRED/OTHER SHORT
STAY when the provider estimated a 2 MN, be sure
it is clear in the discharge note – all signed prior to
discharge. Ex) Recovered better/faster than anticipated.
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Check off boxes with regulatory language
that is done with each inpt does not support
inpt.
RAC 2014
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1) Missed or flawed orders. (EX: a) Order states observe
and discharge in the am. Billed as inpt. b) multiple ‘check
boxes’ to pick from. Pick “obs”, billed inpt.
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2) Surgery not on inpt only list. (EX: a)multiple outpt
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3) Uncertain Course. (EX: a)symptoms/no dx b) no plan
for why 2 MN.
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4) Attestation/Certification process. (EX: Box marked
surgeries does not equal an inpt/spinal b) MAC has to flag
for audit/CPT code the file and confirm if on the list.
without a reason/”I certify’ …what the regulation stated with
no further justification. Does use H&P but needs tied to why
the 2 MN .
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MLN Matters SE1333, effective 10-13
“Temporary instructions for implementing of Final Rule 1599-F for Part A to
Part B billing of denied hospital inpt claims.” (www.cms.gov/outreach-andeducation/Medicare-learning-networkMLN/MLNMattersarticles/downloads/SE1333.pdf
FEAR OF AUDIT IS NOT JUSTIFICATION TO VIOLATE BENEFICARIES RIGHTS OR
DEPRIVE THE HOSPITAL OF COMPLIANTLY EARNED REIMBURSEMENT.
(Physician advisors on RAC RELIEF 11-13)
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“No Medicare payment shall be made for items or services
that are not reasonable and necessary for the diagnosis or
treatment of illness of injury or to improve the functioning of
a malformed body member.”
Title XVIII of the Social Security Act, Section 1862 (a) (1) (A)
“Observation services must also be reasonable and necessary
to be covered by Medicare.” (Medicare claims processing
manual, Chapter 4, 290.1) Obs did not change.
“The factors that lead a physician to admit a particular patient
based on the physician’s clinical expectation are significant
clinical considerations and must be clearly and completely
documented in the medical record.” (IPPS CMS 1559-F, p
50944)
Only a physician can direct care …and…Patient Status….
RAC 2014
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2midnight presumption
“Under the 2 midnight
presumption, inpt hospital
claims with lengths of stay
greater than 2 midnights
after formal admission
following the order will be
presumed generally
appropriate for Part A
payment and will not be the
focus of medical review
efforts absent evidence of
systematic gaming, abuse
or delays in the provision of
care.
Pg 50959
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Benchmark of 2 midnights
“the decision to admit the
beneficiary should be based
on the cumulative time
spent at the hospital
beginning with the initial
outpt service. In other
words, if the physician
makes the decision to admit
after the pt arrived at the
hospital and began
receiving services, he or she
should consider the time
already spent receiving
those services in estimating
the pt’s total expected LOS.
Pg 50956
RAC 2014
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EX) Pt is an outpt and is
receiving observation services
at 10pm on 12-1-13 and is
still receiving obs services at 1
min past midnight on 12-2-13
and continues as an outpt until
admission. Pt is admitted as
an inpt on 12-2-13 at 3 am
under the expectation the pt
will require medically
necessary hospital services for
an additional midnight. Pt is
discharged on 12-3 at 8am.
Impacts ER, Observation and
Outpt Surgery.
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Ex) Pt is an outpt surgical
encounter at 6 pm on 12-2113 is still in the outpt
encounter at 1 min past
midnight on 12-22-13 and
continues as a outpt until
admission. Pt is admitted as
an inpt on 12-22 at 1am under
the expectation that the pt will
required medically necessary
hospital services for an
additional midnight. Pt is
discharged on 12-23-13 at
8am. Total time in the hospital
meets the 2 MN
benchmark..regardless of
Interqual or Milliman criteria.
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% of Complex Denials for Lack of Medical Necessity
for Admission – thru 3rd Q 2013/4th Q 2011- by $$ Impacted
15/14/18/14/17/
25/21%
19/17%/19/21/23
/24/14%
Syncope and collapse (MS-DRG 312)
Percutaneous Cardiovascular Procedure (PCI)
w drug-eluting stent w/o MCC (MS-DRG 247)
T.I.A. (MS-DRG 69)
4/0/0/0/0/6/8%
10/10/10/13/10/9
/8%
Chest pain (MS-DRG 313)
Esophagitis, gastroent & misc digest disorders w/o MSS 11/13/16/13/10/3
(392)
/0%
Back & Neck Proc exc spinal fusion w/o CC/MCC (DRG
491)
0/5/5/5/5%//
AHA RACTrac
RAC 2014
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National UB committee – Occurrence code 72
First /last visit dates
The from/through dates of outpt services. For use on outpt
bills where the entire billing record is not represented by the
actual from/through services dates of Form Locator 06
(statement covers period) ……. AND
On inpt bills to denote contiguous outpt hospital services that
preceded the inpatient admission. (See NUBC minutes 1120-13)
Per George Argus, AHA, a redefining of the existing code will
allow it to be used Dec 1, 2013. CMS info should be
forthcoming.
MM8586 ML Matters, Jan 24, 2014 CR 8586
UPDATE: UG Some MACs are stating ‘ignoring’ the code!!!
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Lots of ‘chatter’ but evaluate this process flow.
1st question: Can the pt go home safely from the
ER? Assess the reasons the provider (ER doc
consults with the provider directing care) and
document same. (Risk factors, history of like
condition with outcome, presenting factors, plan )
2nd question: Can the ER physician (after consulting
with the admitting) attest/certify that the pt needs
to ‘be in the hospital’ for an estimated 2 midnights
to resolve the condition?
3rd question: If no, move to OBS and evaluate
closely. If yes, move to inpt with other elements
of the inpt certification.
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Case: ER doctor
admits the pt on Sat
am. Facility is not
using a certification
form/tool . The ER doc
does not have
admitting privileges, so
bridge/transitional.
Did not document
conversation with the
admitting or
hospitalist.
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Mon am UR comes in.
Determines the case
does not meet clinical
guidelines/Interqual.
Asks Admitting to
convert back to Obs.
Pt was discharged
home prior to having
the UR provider agree.
What is broken?
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EX) Pt came to ER on
Fri night/1900. ER
provider, after
discussing with the
hospitalist, determines
the pt is not safe to go
home.
They agree that the pt
does not need 2 MN ,
at this time, and places
in obs.
No UR coverage in the
ER or weekends.
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1st MN/ER
2nd MN/Sat – does the
pt need additional
services/ care to
resolve the condition?
UR discusses with
admitting provider and
converts to INPT with
the PLAN clearly
outlined in the Reason
for Admit for the 2 MN.
NO dedicated
Ambulatory Outpt Unit
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It never has and never will mean – “meeting clinical
guidelines” (Interqual or Milliman)
It has always meant – the physician’s documentation to
support inpt level of care in the admit order or admit note.
SO –if UR says: Pt does not meet Criteria – this means: Doctor
cannot certify/attest to a medically appropriate 2 midnight
stay – right?
11/1/2013 Section 3, E. Note: “It is not necessary for a
beneficiary to meet an inpatient "level of care" by screening
tool, in order for Part A payment to be appropriate“
Hint: 1st test: Can attest/certify estimated LOS of 2
midnights? THEN check clinical guidelines to help clarify any
medical qualifiers… but the physician’s order with ROA –
trumps criteria.
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AHA’s to CMS:
Sept 26th: “Statement on
Two Midnight Rule”
Included are Sept 18th
situations with
‘assumptions.” Pending
“CMS’s long standing
guidance has been that
reviewers should evaluate
the physician’s
expectations based on the
information available to the
admitting practitioner at the
time of admission. “
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Fed Reg, 8-19-13 R&R
“Impacts of change in
Admissions and Medical
Review Criteria” (Chpt
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100-04 pg 50592)
Due to estimated increase
of $220M , reduced
payment of .02%. (CFOs
are very nervous they are
going to loose many inpts
rather than have the gain as
outlined by CMS in final
regs.)
PS OBS still does not count
toward 3 midnite/SNF
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ER & Inpt surgery
Attack these two places with a pro-pt status focus,
not placing and chasing.
Develop internal flows to attack:
◦ ER - how much UR coverage ? 24/7? or utilize ER lead
RNs or house supervisors. No pt is given a bed without pt
status ‘blessed.’ Integrated CDI program will help with
cross training.
◦ Inpt surgery – all daily inpt surgery schedules are reviewed
by UR to review outpt being scheduled as outpt.
◦ Involve the internal UR leaders and PA for patterns.
◦ Sr leadership will have to be prepared to push thru the
regulation with any problematic providers.
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Inpt only – scheduling gets CPT code,
researches, notifies UR if problems.
Outpt surgeries being scheduled as inpt –
scheduling notifies UR of a potential problem.
PATTERNS – UR tracks and trends
concerns/non-compliant surgeons.
Physician advisor – involved as needed for
peer to peer intervention, education, etc.
UR committee – patterns are presented with
assistance/intervention requested.
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Outpt surgery.
After routine recovery
(up to 4-6 hrs), doctor
orders the pt to ‘stay
the night.”
What did the doctor
really want? Who is
reviewing every ‘pt in a
bed’ after the 4-6 hrs
of RR? Why still in
house?
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Cath Lab
Doctor has
routinely had the
patient the pt stay
overnight.
Historically billed a
a 1 day inpt stay.
Explore options –
inpt, outpt or obs.
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After an uneventful,
but late outpt invasive
procedure, physician
orders to ‘stay the
night’. This is a FREE
service as the pt has
no medical reason to
be in a bed. Time to
discharge .
Liability risk for having
a non billable pt in the
hospital.
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Have the pt stay the
night and do the test
in the am or Mon/wkd.
What is the clinical
reason to ‘stay the
night?” If not an
unplanned event
leading to OBS, a FREE
service.
Is there another clinical
reason to be in a bed?
Document it well with
correct status…
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Effective DOS 10-13
Physician certification is
required with every inpt
order.
Challenges – doctor
directing/knowledge of pt’s
care must sign/”ordering”
status privileges.
At beginning of inpt and
when converting from obs
and prior to discharge..
with the record still
supporting inpt LOC
Discuss ordering privileges,
TO/VO with authentication
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Key elements of the
certification:
Must order ‘inpt’ w/
Authentication of Inpt order.
Anticipated LOS –(2 MN or 1
MN with 1 outpt MN)
Reason for admission/PLAN
for 2 MN to treat dx=HUGE
Anticipated D/C destination
and needs (D/C note ok)
+CAH – may be reasonably d/c
or transferred in 96 hrs.
Separate form? Not required
Incorporated into existing
documentation ‘somewhere?”
Consistency always = form
(Hospital certification/CMS)
RAC 2014
42
Date/Time
Patient Status
Date of Service:
Check appropriate box for patient status:
Place in Outpatient Observation
Diagnosis:________________________________________
Reason for Placement: ______________________________
INPATIENT ADMISSION CERTIFICATION /Medicare only
Must be completed by provider for Inpatient Admissions
Box A This patient is admitted for inpatient services. The patient is medically appropriate and meets medical
necessity for inpatient admission in accordance with CMS section 42 C.F.R §412.3.
I reasonably expect the patient will require inpatient services that span a period of time over two midnights. My
rationale for determining that inpatient admission is necessary is noted in the section below. Additional
documentation will be found in progress notes and admission history and physical.
Primary Diagnosis:
Expected Length of Stay: (MEDICARE ONLY)
Select One:
2 Midnights (MN) Inpatient
1 MN Outpatient (ER or Obs) and 1MN Inpatient
For Initial Certification (CAH only)
I Expect the Length of Stay to Not Exceed 96 hrs
Admit to Inpatient Services (Medical)
For Re-Certification
The Length of Stay is Exceeding 96 hrs
PROVIDER MUST COMPLETE CERTIFICATION
Plans for Post-Hospital Care: See Discharge Summary
Supportive Findings to Primary Diagnosis: [examples: co-morbidities, abnormal findings, diagnostic
abnormalities, exacerbations, new onset of disease with______(co-morbidities)]
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________
Level of Care
Acute Care
Telemetry
Reason for Admission: ______________________________
Attending Provider (Print Name)
(Note: if the ER provider does not have ‘admitting privileges, only transitional
privileges”, important that this include a statement: Spoke with the
admitting/attending_______, and we concur with the admission status.” ER provider
signs.
PCP (Print Name)
PCP (Print Name)
Provider Signature
Provider Signature
Certifying Provider Signature (this 2 nd signature required for inpatient admissions as the provider who is
directing care.)
Date/Time
Date/Time
.SAMPLE CERTIFICATION FORM (Form is not required)
Use for both OBS and Inpt – clarification of order and intent
And remember – it is not just a ‘form’ but the beginning of the pt story.
Key elements: Reason for admit/what is the plan for the estimated 2 MN stay or
1 additional MN after 1 outpt MN.
RAC 2014
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



If it doesn’t tell the reason for admit, why the dx
will take an estimated 2 MN/presumption or a 2nd
MN /benchmark.
If it doesn’t outline the plan for treatment with the
treatment done and wrapped up in the discharge
note.
Medically necessary? If it isn’t addressed thru the
Reason for Admit/Plan, action attached to the RFA,
then clinical guidelines won’t ‘bail’ out the inpt.
SO….It is all about the story told by the providerbeginning, middle, end with a beautiful wrap up.
RAC 2014
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


If the beneficiary has
already passed the 1
midnight as an outpt, the
physician should consider
the 2nd midnight
benchmark met if he or she
expects the beneficiary to
require an additional
midnight in the hospital.
(MN must be documented
and done)
Note: presumption = 2
midnights AFTER obs. 1
midnight after 1 midnight
OBS = at risk for inpt audit
Pg 50946

..the judgment of the
physician and the physician’ s
order for inpt admission
should be based on the
expectation of care surpassing
the 2 midnights with BOTH the
expectation of time and the
underlying need for medical
care supported by complex
medical factors such as history
and comorbidities, the severity
of signs and symptoms ,
current medical needs and the
risk of an adverse event. Pg
50944
RAC 2014
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

412.3 (e) (2) (see p. 50965
of Final Rule) – “If an
unforeseen circumstance,
such as a beneficiary’s
death or transfer, results in
a shorter beneficiary stay
than the physician’s
expectation of at least 2
midnights, the patient may
be considered to be
appropriately treated on an
inpatient basis, and hospital
inpatient payment may be
made under Medicare Part
A.” (Thx, Accretive)”




Can 1 day stay inpts
still occur?
YES -but as the regs
clearly state, anticipate an
audit as it should be a
highly uncommon
occurrence.
1 MN as outpt or OBS and 1
MN as inpt = inpt
Just because a patient dies, is
transferred for tertiary care, or
leaves AMA, (paraphrased from
LCD L27548) it does not change
the presentation of clinical
factors/criteria that went into the
physician’s complex medical
decision to admit to an inpatient
status. (Thx, Appeals Masters)
RAC 2014
46

Lots of discussion on : “My patient is very sick, at

CMS has stated: Rare and unusual. 2 outlined

risk but I don’t think they will need 2 midnights. I checked
with Interqual/UR and it meets their definition of an inpt. I
am admitting and highly anticipate they will only need 1
midnight.” (nope, not an inpt/obs and monitor closely)
definitions at this time: inpt only surgeries and
initiation of mechanical ventilator with 1 midnight.
They are still working on how to address transfers
out & hospice referral.. (RAC Summit/12-13)
DIFFICULT to prove –but part of P&E concerns.
RAC 2014
47
CAH: must use the 2 MN
presumption/benchmark PLUS
certification to reasonably
expect the pt to transfer or
discharge within 96 hrs. If
longer, re-do but should be
unusual cases. (Watch HR
3991/slim chance to pass.)
Ex) What if the surgery was
delayed because the surgeon
was only at the hospital 1 day
a week? Is there another
hospital where the surgery
could occur without the delay?
EX) Is the stay beyond 96 hrs
within the scope of the CAH?
Long obs:
Pt in in Obs for 2
midnights. 1st Q: did the pt have
48+ hrs of billable obs or just hrs
in a bed?
2nd Q: Was the regulation for OBS
met? (OBS is: Active physician
involvement/ongoing assessment.)
If MET- then the pt was eligible to
convert to INP after the first
midnight with the physician
‘attesting’ of the need for
medically appropriate care -2nd
MN
http://www.cms.gov/Medicare/MedicareFee-for-ServicePayment/AcuteInpatientPPS/Downloads/IPCertification-and-Order-09-05-13.pdf (WPS
Excellent Audio 11-11-13)
RAC 2014
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RAC 2014
49
Delays in the Provision of Care.: FAQ 12-2313 CMS

Q3.1: If a Part A claim is selected
for Medical review and it is
determined that the beneficiary
remained in the hospital for 2 or
more MN but was expected to be
discharged before 2 MN absent a
delay in a provision of care, such
as when a certain test or
procedure is not available on the
weekend, will this claim be
considered appropriate for
payment under Medicare Part A as
an inpt under the 2 MN
benchmark?
A3.1: Section 1862 a 1 A of the SS Act
statutory limits Medicare payment to
the provision of services that are
reasonable and necessary for the
diagnosis or treatment of illness or
injury or to improve the functioning of a
malformed body. As such CMS '
longstanding instruction has been and
continues to be that hospital care that is
custodial, rendered for social purposes
or reasons of convenience, and is not
required for the diagnosis or treatment
of illness or injury, should be excluded
from Part A payment. Accordingly, CMS
expects Medicare review contractors will
exclude excessive delays in the
provision of medically necessary
services from the 2 MN
benchmark. Medicare review
contractors will only count the time in
which the beneficiary received medically
necessary hospital services."
RAC 2014
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




Admitting physician ‘starts the pt story’ thru use of the
certification process – including REASON FOR ADMIT.
Internal Physician Advisor- trainer/champion, works closely
with UR and all providers to ensure
understanding/compliance.
Nursing continues with the care/assessments/interventions
relative to the reason for admit.
UR works with the treating/admitting physician to
expand/clarify the documentation at the beginning and
conclusion of the patient’s stay. Additionally UR closely
monitors completion of the certification for ALL payers.
Integrated CDI continually interacts with providers/nursing to
ensure all elements are clear /complete . 1 voice of
ongoing education…
RAC 2014
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




Certification form – always.
Consistently start and
clarify the pt story.
UR in the ER – always
involved prior to placement.
Hospitalist – always see the
pt rapidly/less than 2 hrs
from referral to inpt.
Integrated CDI program –
one ongoing audit, one
voice for ed
Dedicated beds for OBS.
OBS hasn’t changed at all.
UR assigned to closely
monitor every OBS that
exceeds the first midnight.





Grow an internal physician
advisor—NOW! Ongoing
education, UR
support/intervention =
effective change
Actively involve nursing as
the eyes of the pt story
24/7.
Actively involve surgery
scheduling to ‘spot’ any
common outpt surgeries
being scheduled as inpt.
Beef up the UR committee
Beef up the UR ‘s role,
separate from case mgt.
Front end…
RAC 2014
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


Services unavailable
Weekends & Holidays
Patient safety
Consultants unavailable
Equipment down
Patient & family issue
(Thanks, Dr Salvador, DE hospital & PA/UR bootcamp faculty)
RAC 2014
53
1)
2)
3)
Embed questions from the
optional certification form
within the electronic
orders or use the manual
form.
Empower UR staff to
assist with compliance
Know which procedures
are riskiest, such as cath
lab procedures and outpt
surgeries that ‘stay the
night’.
4)
5)
6)
7)
8)
Target physicians in the
ED.
Hire internal physician
advisors to assist with
education.
Understand the
implications for transfers
Use internal audits to
identify problem areas
Learn from the probes and
hammer the message
home
RAC 2014
54
Day Egusquiza, President
AR Systems, Inc
Box 2521
Twin Falls, Id 83303
208 423 9036
[email protected]
Thanks for joining us!
Free info line available.
NEW WEBPAGE: http://arsystemsdayegusquiza.com
JOIN US FOR UR/PA Bootcamp in San Antonio
July 2015
RAC 2014
55
More implementation ideas
Plus MAC audit hot topics
RAC 2014
56





Noridian/J3 has announced Probe audits for
AZ, MT, ND, SD, UT, WY
Probe for 1 day stays, 2 day stays, 3 day stays
and high dollar (w/o definition of $) CAH=3
day SNF /2013
Prepayment auditing/2012: DRG 389, 313, 512, 191, 545,
517, 243, 244, 227, 607, 445, 242, 921, 310, 23, 670 /?%
A/B auditing: doctor and hospital claims audited
(Kyroplasty)—Cert audits
WPS released a CERT review of Epidural
Steroid Injections w/large error rate. (1/31)
(LCD30481). Prepayment 310, 313, 192, 690
RAC 2014
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
Highmark (Now Novitas Solutions)
◦ Probe for DRG 470/Major Joint Replacement or
reattachment of lower extremity w/MCC. Need to document
end stage joint disease & failed conservative therapy. (EX:
Trailblazer Transmittal ID 14362/LCD)
◦ Probe for DRG 244 Permanent Cardiac Pacemaker implant
w/o CC or MCC.
◦ NEW: 313, 392, 292 (2012)
◦ Msg from provider: Have been having 100% prepayment
audit payment for DRG 313/chest pain for almost 2 years
now. The site indicates they are being successful around
90% of time at the 3rd level appeal/ALJ but it is taking about
18 months. There does not appear to be a change with the
pre-payment review even with the overturn rate. (per PA
facility history 9-11)
RAC 2014
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

Trailblazer/Novitas: to increase consistency
in Medicare reimbursement, effective 11-11,
Trailblazer will begin cross-claim review of
these services. The related Part B service
(E&M, procedures) reported to Medicare will
be evaluated for reimbursement on a post
payment basis. Overpayments will be
requested for services related to the inpt stay
that are found to be in error.
First Coast & HighMark/Novitas– similar
3-12 TX hospital lost 470; provider recouped
RAC 2014
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NJ Hospital: We have had prepayment denials from Novitas (Highmark) in addition to our RAC denials.
For the Prepayment Denials, we send appeal with additional information from the doctor’s office notes.
They are looking for 4 key elements:
•Level of Pain and Effect on ADLs
•Response to Treatment with Medications: NSAIDS and Injections
•Response to Treatment with other modalities: Assist Devices, Braces and PT
•X Ray Findings
In the past, it was ok to just say “did not respond to conservative treatment”.
Now they want details documented.
NOTE: Med Learn SE1236 Documenting to support medically necessity of DRG 470
American Association of Hip & Knee Surgeons/AAHKS, June 2012 publication. Created a
check list to assist surgeons with the required documentation elements.
Suggestions: Surgery scheduling joins the UR prevention team. Education on new checklist requirements
In the medical record /surgical H&P. Validate it is present prior to procedure. UR works with the
Surgeon; surgery works with the surgeon. Alternative idea: Include the physician’s notes with the
Hospitals. Alert: Many HIM depts would not submit these as they may not be identified as part of the
legal medical record. Also some state limitations. Explore HIPAA privacy issues for non-hospital
records for treatment, payment or operations.
RAC 2014
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
Palmetto, Pre Payment Auditing

Began early 2012

(Site: CA site. Prior to Feb, 2012 – never had a prepayment audit request. Had 12 in 1st request.)
DRGs focus:
◦ 871
Septicemia/Sepsis
◦ 641
Misc disorders of nutrition
◦ 690
Kidney / UTI
◦ 470
Joint replacement
◦ Probe 227/inpt implant with defib w/o cath or CC or MCC.
Aver $ 42,298. Rebill – ancillary only (11-12)
J15/CGS:
DRG 308-310, post payment Cardiac Arrythmia audit (KY and Ohio).
123 claims. 55 denied. Due to ‘moderate error rate of 36.4%, continued complex
auditing will occur.
RAC 2014
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Cahaba – Pre-Auditing of the below DRGs.











069
191
195
247
287
313
392
552
641
945
470
(2-12)
(Transient Ischemia)
(Chronic Obstructive Pulmonary Disease w CC)
(Simple Pneumonia & Pleurisy w/o CC/MCC)
(Percutaneous Cardiovascular Procedure w Drug-Eluting Stent w/o
MCC)
(Circulatory Disorders Except AMI, w Cardiac Cath w/o MCC)
(Chest Pain)
(Esophagitis, Gastroenteritis & Misc Digestive Disorders /o MCC)
(Medical Back Problems w/o MCC)
(Nutritional & Misc Metabolic Disorders w/o MCC)
(Rehabilitation w CC/MCC)
(Joint replacement)
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




Dear pt
As part of ABC hospital’s commitment to compliance, we are
continuously auditing to ensure accuracy and adherence to
the Medicare regulations.
On (date), Medicare and ABC hospital had a dispute regarding
your (type of service). Medicare has determined to take back
the payment and therefore, we will be refunding your
payment of $ (or indicate if the supplemental insurance will
be refunded.)
If you have any questions, please call our Medicare specialist,
Susan Jones, at 1 -800-happy hospital. We apologize for any
confusion this may have caused.
Thank you for allowing ABC hospital to serve your health care
needs.
RAC 2014
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



HDI and CGI have started sending their ‘New
Issue Validation’ sample letters.
Statement of Work allows sampling of up to
10 claims (in addition the 45 day limit) to
prove a vulnerability with a new issue. Results
will be issued on the findings with data
submitted to the New Issue Board/CMS.
HOT: Share what was requested so potential
new items are know; preventive work.
EX) Readmission within 30 days for AMS.
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

SE1024 “RAC: High Risk Vulnerabilities- No
documentation or insufficient
documentation submitted” (July 2010)
Two areas of high risk were identified from
the demonstration project:
No reply to request/timely submission (1
additional attempt must be made prior to
denial)
Incomplete or insufficient
documentation to support billable services
RAC 2014
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








SE1024/July
No documentation or insufficient documentation
submitted
SE1027/Sept
Medical necessity vulnerabilities for inpt hospitals
SE1028/Sept
DRG coding vulnerabilities for inpt hospitals
SE1036/Dec
Physician RAC vulnerabilities
SE1037 /Jan 11
Guidance on Hospital Inpt Admission
(referencing CMS guidelines, does not mandate Interqual/Milliman,
RAC judgment allowed)
SE1104/Mar 11 Correct Coding POS/Physicians
Special Edition #SE1121/June 11 RAC DRG
Vulnerabilities –coding w/o D/C summary
SE1210/Mar 12
RAC with MN of Renal & Urinary Tract Disorders
SE1236/Sept 12
Documenting Medical Necessity of Major Joint
Replacement (hip and knee) DRG 470
RAC 2014
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
Transmittal 47, Interpretive Guidelines for
Hospitals June 5, 2009
www.cms.hhs.gov/transmittals/downloads/R47SOMA.pdf



“All entries in the medical record must be complete. Defined
by: sufficient info to identify the pt; support the dx/condition;
justify the care, treatment, and services; document the course
and results of care, treatment and services and promote
continuity of care among providers.
“All entries must be dated, timed and authenticated, in
written or electronic format, by the person responsible for
providing or evaluating the service provided.”
“All entries must be legible. Orders, progress notes, nursing notes,
or other entries ….. (Also CMS covers in SE1024 MedLearn release)
RAC 2014
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
Common issues:
◦ Dept leadership not understanding the ownership
of accuracy of orders to charges to billed.
◦ Fix: Daily charge reconciliation- scheduled
against completed.
 MEU: 2 initial first hrs of hydration. Could happen, but
rare. FIX: ER to OBS. ER is completing their drug adm
charge ticket and OBS does theirs. They do not ‘see’ the
others so duplication or errors in hierarchy occur.
Identify a charge capture analyst for all drug adm. At the
conclusion of OBS, 1 ticket, 1 touch, 1 correct charge.
Documentation variances identified.
RAC 2014
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
DRG validation
◦ Budget cuts resulted in less coder validation audits.
Education thru audit was lost or greatly reduced.
◦ Physician querying for clarity delays submission of claims
and cash flow
◦ MedLearn/RAC findings indicated that DRG changes (up
and downward) were the result of records final coded
without discharge summaries. Challenging as to wait for
the d/c summary = significant cash delays. Common
practice – code with queries for clarity. (Special Edition
#SE1121/June 11 RAC DRG Vulnerabilities –coding w/o
D/C summary)
◦ Safety net – audits to review DRG changes from D/C
summary. Track by provider with a hx of ‘surprises’.
RAC 2014
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


Ensure the attending/provider directing care
receiving the 2nd opinion carries the
recommendation into the record and directs
care from the recommendation
Auditing of the primary provider’ s
documentation should include: Clearly
outlining the severity of illness in the admit
note/order PLUS nursing documenting to the
Intensity of services that must be done as an
inpt.
Nursing is usually unaware of the status they
are documenting.
RAC 2014
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



Surgery director and surgery scheduler join
the preventive team.
UR reviews all inpt surgeries prior to surgery.
Reviews the H&P, discusses how well the
surgeon has tied in the risk to the reason for
a normal outpt to be done as an inpt.
Works with provider and Surgery to
potentially revise to an outpt, wait for the
adverse/unexpected event and move to obs
or inpt or improve the inpt documentation.
Involved nursing in the education as they will
be the bedside eyes of the pt status.
RAC 2014
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June 26, 2009/CMS Website
 CMS reversed earlier decision to AUTO
recoupment SNF payment if the hospital is
denied/recouped its 3 day qualifying stay.
 If the hospital is recouped for any activity,
Part B/physician will be evaluated, but not
auto recouped.
 Will look but not auto recoup in both.
RAC 2014
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



Joint audits. Physicians and providers audit the
inpt, OBS and 3 day SNF qualifying stay to learn
together.
Education on Pt Status. Focus on the ER to address
the majority of the after hours ‘problem’ admits.
Identify physician champions. Patterns can be
identified with education to help prevent repeat
problems.
Create CPOE to assist with completeness of
order – Inpt, OBS, with protocol – with
reason for decision.
RAC 2014
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